Follow Patrick Linkedin Facebook
Email Patrick Email
Financial
Oct 2, 2017

Is Wilmington A Good Long-Term Investment?

Sponsored Content provided by Patrick Stoy - Mortgage Consultant/Owner, Market Consulting Mortgage

In a recent article, I discussed whether it is a good idea to continue renting a home or make the leap and become a homeowner. 

One of the underlying assumptions in favor of the case for home ownership is the idea that home prices will appreciate by a factor of two percent per year. History has shown that two percent is a conservative estimate for annual price appreciation, and the fact is that home prices have increased by a significantly higher amount than that in some cases.

Taking price appreciation as a given in our area means accepting the idea that Wilmington is a solid and stable long-term investment. How much do you believe in the long-term viability of our area? Do you think Wilmington will remain a popular destination for tourists and a great place to call home? These are questions you should ask yourself if you are considering buying a home.

Buying a home right now is a much better investment than renting. The population of Wilmington is expected to rise substantially over the next five to 10 years. When the population of a city increases, the inventory of available properties tends to shrink. As the inventory of available properties becomes more and more scarce, the costs that people pay for rent tend to rise and so do home prices.

Of course, it’s a basic law of supply and demand. Any local Realtor will be happy to provide you with some anecdotal evidence - there simply isn’t much inventory right now.

The numbers don’t lie: there was only a little over three months’ worth of inventory available in Wilmington in June 2017 compared to more than four and a half months’ worth of inventory in June 2016. This may not sound like much of a difference, until you consider that this represents more than a 32 percent decline in inventory!

All of this is according to the North Carolina Association of Realtors, which tracks the number of months it would take to exhaust active listings at the current rate of sales.

To give you some perspective, a historical average is around six months. Six months of inventory is often recognized as a benchmark of a healthy, balanced real estate market.

In an article that was published by the Star News, referencing a study by Metro Forecasting Models, the population in New Hanover County is expected to rise by more than eight percent by 2020. By 2025, the population is expected to grow by more than 16 percent.

The growth of the population here is widely accepted as a fact among the locals. The word on the street could serve as proof the population is growing rapidly, since it’s not uncommon to hear a friend or neighbor say, “Where are these people going to live?”

Not to belabor the point, but as the population rises, the housing inventory becomes scarcer. This makes an increase in monthly rental costs and a strong appreciation of home prices seem almost like a certainty. 

For a no-obligation consultation about your options for purchasing a home, give me a call at the number below. 

Patrick Stoy (NMLS Numbers 39527 and 39166) has 18 years of mortgage lending experience. Patrick is CEO of Wilmington-based Market Consulting Mortgage, which he started in 2005 with a mission to build lifelong customer relationships by providing real value. To learn more about Marketing Consulting Mortgage, visit www.macmtg.com. Patrick can be reached at [email protected] or 910-509-7105.
 
 

Other Posts from Patrick Stoy

Mcm 14jan insight
Ico insights

INSIGHTS

SPONSORS' CONTENT
Billcoleman lopw headshot

Reaping The Benefits Of Patience

Bill Coleman - Live Oak Private Wealth
Mikestonestreetcropped 862150530

Why HOA Board Member Education Matters

Mike Stonestreet - CAMS (Community Association Management Services)
Jasonpathfinder3

Finding Success in Succession Planning

Jason Wheeler - Pathfinder Wealth Consulting

Trending News

National Retailer, More Coming To Hanover Center

Cece Nunn - Nov 29, 2022

Cape Fear Commercial Partners With Developers On Leland Project

Cece Nunn - Nov 30, 2022

Developers To Mark Growth Of Soda Pop District Project

Staff Reports - Nov 29, 2022

New Nosh, Including True Blue Street Food Concept, Coming To Cargo District

Miriah Hamrick - Nov 30, 2022

The Vault Opens With Unique Wine Cellar, Coffee To Go

Miriah Hamrick - Nov 30, 2022

In The Current Issue

Back To School At Any Age

Amy Keith returned to UNCW in 2009, this time as a program coordinator at OLLI, which focuses on lifelong learning for people 50 and older....


Film Festivals Make A Comeback

Area film festivals took a hit when the COVID pandemic was at its peak, but their organizers expect lessons they learned about the importanc...


FNB, UB Bancorp's Local Impacts

Despite a scarcity of acquisition targets, the state will continue to see mergers and acquisitions because the North Carolina economy is so...

Book On Business

The 2022 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

Trying to Grow a Business?
2020 Health Care Heroes
2020 WilmingtonBiz 100